In other words, that money you thought you had... You don't really have it. We can only hope this message was not meant to restore confidence and prevent future bank runs. Because if Europe wanted a continental bank run, it may have just gotten one.

European finance officials have discussed as a worst-case scenario limiting the size of withdrawals from ATM machines, imposing border checks and introducing capital controls in at least Greece should Athens decide to leave the euro.

EU officials have told Reuters the ideas are part of a range of contingency plans. They emphasised that the discussions were merely about being prepared for any eventuality rather than planning for something they expect to happen - no one Reuters has spoken to expects Greece to leave the single currency area.

Belgium's finance minister, Steve Vanackere, said at the end of May that it was a basic function of each euro zone member state to be prepared for problems. These discussions appear to be in that vein.

But with increased political uncertainty in Greece following the inconclusive election on May 6 and ahead of a second election on June 17, there is now an increased need to have contingencies in place, the EU sources said.

The discussions have taken place in conference calls over the past six weeks, as concerns have grown that a radical-left coalition, SYRIZA, may win the second election, increasing the risk that Greece could renege on its EU/IMF bailout and therefore move closer to abandoning the currency.

No decisions have been taken on the calls, but members of the Eurogroup Working Group, which consists of euro zone deputy finance ministers and heads of treasury departments, have discussed the options in some detail, the sources said.

As well as limiting cash withdrawals and imposing capital controls, they have discussed the possibility of suspending the Schengen agreement, which allows for visa-free travel among 26 countries, including most of the European Union.

"Contingency planning is underway for a scenario under which Greece leaves," one of the sources, who has been involved in the conference calls, said. "Limited cash withdrawals from ATMs and limited movement of capital have been considered and analysed."

Another source confirmed the discussions, including that the suspension of Schengen was among the options raised.

"These are not political discussions, these are discussions among finance experts who need to be prepared for any eventuality," the second source said. "It is sensible planning, that is all, planning for the worst-case scenario."

The first official said it was still being examined whether there was a legal basis for such extreme measures.

"The Bank of Greece is not aware of any such plans," a central bank spokesman in Athens told Reuters when asked about the sources' comments.

The vast majority of Greeks - some surveys have indicated 75 to 80 percent - like the euro and want to retain the currency, something Greek politicians are aware of and which may dissuade them from pushing the country too close to the brink.

However, SYRIZA is expected to win or come a strong second on June 17. Alexis Tsipras, the party's 37-year-old leader, has said he plans to tear up or heavily renegotiate the 130-billion-euro bailout agreed with the EU and IMF. The EU and IMF have said they are not prepared to renegotiate.

If those differences cannot be resolved, the threat of the country leaving or being forced out of the euro will remain, and hence the need for contingencies to be in place.

Switzerland said last month it was considering introducing capital controls if the euro falls apart.

In a conference call on May 21, the Eurogroup Working Group told euro zone member states that they should each have a plan in place if Greece were to leave the currency.

Belgium's Vanackere said two days after that call that it was a basic function of each euro zone member state to be prepared for any eventuality.

"All the contingency plans (for Greece) come back to the same thing: to be responsible as a government is to foresee even what you hope to avoid," he told reporters.

"We must insist on efforts to avoid an exit scenario but that doesn't mean we are not preparing for eventualities.

This is why the only viable way forward is an European deposit guarantuee ... if we had not squandered so much money on bail outs we would already have close to enough money for it to begin with.

Let the sovereigns and banks default, let the bond holders and investors take the hit ... but protect the depositors, they are far more important to the functioning of the economy.

PS. I don't care about the morality of wealth transfer ... it's not worth the collateral damage to me to let everything burn. I have a job in a trade surplus nation in the EU, but I'm not insane enough to think letting half the Euro zone burn won't hit me here as well. The problem is the bailout of the rich, not the concept of solidarity. Even now we are saving Spanish banks, not Spanish depositors ... we're still doing it wrong.

Depends on what you mean by cash. If you mean physical cash, there's only a trillion or so in circulation (mostly overseas), whereas M2 is closer to ten trillion... not enough physical bucks to go around. If you mean electronic cash 'equivalents' like now accounts, money market funds, etc., there are all sorts of arbitrary restrictions now in place that can be invoked in an emergency situation.

Speaking of physical cash, was returning home through a major texas city on an interstate the other weekend and was pulled over for, ah, excessive speed. Probably the only time I've ever received a warning for this; officer told me flat out that he was only interested in 'interdiction' and in response to my quizzical look further explained 'you know like contraband, people smuggling, large sums of cash'. At this point I wouldn't say cash is something safe for an individual to be hauling about; if you aren't robbed by a common thug, you might still be relieved of your loot by another under the color of law.

US has a real fiscal/monetary structure behind its currency. We're not in the same position as the EZ. We also have increasing, not declining growth. US did not implement policies doomed to failure the way the EZ has.

Two people can have completely different diets and still have a heart attack. Patient A is vegan. Patient B eats donuts. They both suffer from massive heart attacks.

In a complex world, made more complex by foolish self-serving political stunts, the paths to disaster can be infinite. Just because we haven't made the exact same mistakes as the EZ is of no comfort at all.

I'll readily admit, we screwed the pooch in the Euro zone ... the federal fiscal unity, and stuff like federal minimum wage, with it's implicit wealth transfer to pay for the trade imbalances caused by free interstate trade gives the US a stability the Euro zone lacks.

The Euro zone still has something which the US doesn't though, balanced external trade ... the Euro zone economy is competitive but internally imbalanced, the US is "at mercy" of the house of Saud (ignoring the Military side of the equation).

This is really easy folks. When treasury rates start spiking and the USD takes a dive -- withdraw your money from banks and get into gold or a recently "saved" currency. You'll have months and years after this signal. Just look at the europe slow train wreck.

Rates are still record low and trending lower. Chill for now with popcorn and your fav beverage.

EU officials have told Reuters the ideas are part of a range of contingency plans. They emphasised that the discussions were merely about being prepared for any eventuality rather than planning for something they expect to happen

Using the Rosetta stone for EUSS newspeak where the opposite of what is said is true...Sounds like this will get ugly fast...

Almost has to, now. Otherwise they run the risk of Greece's dynamic, young new guv'nor Alex telling them to go fuck themselves if they think they're getting any of that money back; but we're sticking with the Euro, thanks!. Sets an unfortunate precedent, since there'd be sweet Fanny Adams they could actually do to Greece in that case.

As well as limiting cash withdrawals and imposing capital controls, they have discussed the possibility of suspending the Schengen agreement, which allows for visa-free travel among 26 countries, including most of the European Union.

European finance officials have discussed as a worst-case scenario limiting the size of withdrawals from ATM machines, imposing border checks and introducing capital controls in at least Greece should Athens decide to leave the euro.

Whoa! Reminds me, one of the first things the now defunct Dutch government did in 2010 was to make it illegal for people to call for bank runs. This was after the dsb bank debacle where someone did just that, and it worked, dsb went under. Thought that was pretty scary at the time ...

"Attention, your money may be confiscated and any ATM access denied, because the banks need your money as they gambled and pissed away your mortgage payments and deposits and bailouts that you gave them before."

Doubt it, more like:

"Europe imposes Capital controls, which is another way of saying that your money is guranteed."